Leaving teaching - Should I withdraw the balance of my pension?

BigBoss

I'm leaving teaching after 3 years in the profession.

Should I withdraw my balance from my pension and put it in a different savings instrument?

xylophone

Should I withdraw my balance from my pension

You are in the TPS? https://www.teacherspensions.co.uk/members/the-scheme/active-teacher/leaving-teaching.aspx

BigBoss

Yes indeed.

hyubh

BigBoss wrote: »

I'm leaving teaching after 3 years in the profession.

Should I withdraw my balance from my pension and put it in a different savings instrument?

Assuming you were in the scheme for those 3 years then you are about to have 'deferred benefits' in it. Unless you join another defined benefit scheme that allows transferring in (typically this would mean another public sector scheme), then in almost all cases you should just leave the small TPS pension where it is because its 'cash equivalent transfer value' (CETV) will come far short of the cost of achieving equivalent benefits privately or in a DC scheme.

dunstonh

Should I withdraw my balance from my pension and put it in a different savings instrument?

You dont have a a balance on the teachers pension scheme. It doesnt work that way.

and put it in a different savings instrument?

Even if you did have a balance it would be a pretty awful thing to do.

What has given you the idea that transferring out of the teachers pension scheme is a good idea?

PeacefulWaters

BigBoss wrote: »

I'm leaving teaching after 3 years in the profession.

Should I withdraw my balance from my pension and put it in a different savings instrument?

If you want to be worse off in retirement, yes.

Leave it where it is. Let them know where you are when you change address. Enjoy the income it gives you when you're old.

Mrs PW has just tracked down three historic pensions. One a modest final salary scheme that will give her an income of £1,200 a year in retirement and the others lump sums that, thanks to Budget changes, will allow her to retire 3 years sooner than previously planned and never pay a penny in income tax between retirement and death.